Information for firms on motor finance complaints 

Redress scheme

We've launched an industry wide scheme to compensate motor finance customers who were treated unfairly.

The Supreme Court and High Court, and our own review of motor finance agreements, make it clear that firms broke laws and regulations in force at the time by failing to disclose important information to customers.

For our complete rules and guidance, read our policy statement[5].

Preparing for complaints handling

Following the legal challenges[6], parts of the scheme have been suspended on terms agreed by us with the 4 challengers. 

You should update complainants on the legal challenge, including when it will be heard, what the partial suspension means, and how it may affect the timetable for dealing with complaints or paying any compensation owed. You can use our English factsheet (PDF)[7] or Welsh factsheet (PDF)[8], relevant wording from them, or wording from our statement[4] when communicating with consumers.

You should also continue to comply with all rules that are not suspended. This includes:

• Identifying relevant complaints and agreements.
• Gathering the data needed to identify commission arrangements and disclosure practices, including where information is held by brokers.
• Responding to complainants who are not owed compensation under the scheme by the relevant scheme deadlines, except where:  
  • You consider the complaint was out of time when the scheme was made.  
  • The complaint involves a contractual tie and you are relying on the ‘captive lender’ exception to conclude that no unfair feature was present.  
• Telling complainants the outcome of any non-scheme aspects of a mixed complaint, where the complaint covers matters both within and outside the scheme and the firm says they are not owed compensation for the scheme aspects.
• For brokers, providing lenders with requested documents or information, or confirming they do not hold them, within 1 month of the request.
• Working with claims companies to resolve instances where consumers are represented by more than one party.  
• Cooperating fully and promptly with the Financial Ombudsman Service on any existing complaints that have been referred to it. 

Rules that are not suspended (PDF)[9]

Read more about contingency planning[10].

Reporting to us

You should already have submitted your Scheme Implementation Plans, one-off data and 6-week delivery forecast. Monthly reporting is suspended during the legal challenges.

When to get in touch with us

We expect you to tell us at the earliest opportunity of any issues that may have a material impact on you or your firm’s ability to either deliver an FCA-led scheme or handle motor finance commission complaints under DISP. This can include but is not limited to:

• Any issues that may impact on your financial resilience.  
• Any issues that may impact your operational resilience.  
• Any issues that may impact your ability to carry out scheme steps.  

Any information can be sent to us via the SUP 15 notification form[11]. If you have a named supervisor, you should also notify them at the earliest opportunity.

More information

Since publishing our policy statement,[5] we've heard that more information would help firms understand and prepare for the scheme.

The information in this document is based on queries we’ve received and aims to answer those relevant for a broader audience. If you have any specific questions not covered, please get in touch with your supervisor, or email [email protected].

You should read this document in the context of the ongoing legal challenge to the scheme. We may need to update this document or take further steps in relation to the scheme rules or guidance, as that challenge continues. You should monitor our announcements closely.

Read our further information for firms (PDF)[12]

You can also use our table to jump to relevant sections in the document.